How Does Poor Pricing Affect the Success of a Product?

Low pricing can affect the volume of sales — up or down. Some retailers deliberately price certain products low to get the attention of consumers to whom they hope to sell other more expensive products. But consumers sometimes fear the quality of a product is poor if the price too low. Many look for value and not just the lowest price. Those who want quality products are usually willing to pay a price that the products are worth. Setting prices too low can convey the message to consumers that your product isn’t as good as other similar products on the market. While low prices may not earn you greater profits, the more of a product you sell the more profit you make. Then again, low pricing may not generate enough profit to cover costs, especially if sales volume is down.